Q 5-6-7-8

5) The value of a bond is the present value of the A) dividends and maturity value. B) interest and dividend payments. C) maturity value. D) interest payments and maturity value. 6) If the required return is less than the coupon rate, a bond will sell at A) par. B) a discount. C) a premium. D) book value. 7) If bankruptcy were to occur, stockholders would have prior claim on assets over A) preferred stockholders. B) secured creditors. C) unsecured creditors. D) no one. 8) Key differences between common stock and bonds include all of the following EXCEPT A) common stockholders have a voice in management; bondholders do not. B) common stockholders have a senior claim on assets and income relative to bondholders. C) bonds have a stated maturity but stock does not. D) interest paid to bondholders is tax-deductible but dividends paid to stockholders are